Opened in Asia at $1.6023, retested Monday lows at $1.6021 before picking up demand that took it to initial highs of $1.6041. Move up was seen driven by early demand for yen crosses by returning Japanese accounts, sterling-yen able to extend its recovery off Monday lows at Y125.15 to an early Asian high at Y125.70. Cable eased back to $1.6027 before picking up another round of demand that took rate up to $1.6046, sterling-yen to session highs of Y125.84. Euro-sterling saw a late high Monday of stg0.8095, initially easing off to stg0.8088 in early Asia before rushing back up to mark extended recovery highs at stg0.80995. Failure to break above stg0.8100 saw rate ease off to stg0.8089 before settling between stg0.8090/95 ahead of Europe. Sterling retains an underlying soft tone with attention today turning to UK industrial/manufacturing production data at 0830GMT to further gauge the UK economy, with this set of numbers regarded as ‘clean’ following recent distortions due to bank holidays. Cable offers seen to $1.6050, ahead of $1.6070/80. Support remains into $1.6020 ahead of $1.6000.
EasyForexNews Research Team